USANDA LIMITED The financial year ended on 28 February 2021 - NSC Accounting - Question 2 - 2020 - Paper 1

Next, we calculate dividends paid:

Using the figures given:

Dividends paid:
$ext{Dividends Paid} = ext{Total Dividends Declared} - ext{Dividends Payable} = 247,500 - 340,000 = R742,500$

To prepare the Cash Flow Statement for financing activities:

1. Proceeds from shares issued:

   • Proceeds from 335,000 shares at R7.00 each:
     $ext{Proceeds} = 335,000 imes R7.00 = R2,345,000$
   • Additional contributions:
   • Total Proceeds:
     $R2,345,000 + R11,220,000 = R13,565,000$

2. Change in loan:

   • All proceeds and adjustments summarized:
     So, total cash effects from financing activities would be presented as:
   • Cash effects for financing activities: $ext{Total} = R680,000 + (-R150,000) = R530,000$

To calculate the net change in cash and cash equivalents:

1. Initial cash balance:
   Opening balance: R154,700
   Closing balance calculation: R690,000
   $ext{Net Change} = ext{Cash Closing} - ext{Cash Opening} = R690,000 - R154,700$

To calculate the % operating profit on sales:

Operating profit: R2,262,100
Sales revenue: R17,800,000
ext{Operating Profit Ratio} = rac{ ext{Operating Profit}}{ ext{Sales Revenue}} imes 100 = rac{2,262,100}{17,800,000} imes 100 = 12.7 ext{%}

To determine the acid-test ratio, use the formula:

ext{Acid-Test Ratio} = rac{ ext{Current Assets - Inventory}}{ ext{Current Liabilities}}
Using provided figures:
Current Assets: R659,500
Current Liabilities: R383,000
Thus,
ext{Acid-Test Ratio} = rac{(659,500 - 270,000)}{383,000} = 0.16:1

For ROSHE calculation:
Using:
Net Income: R1,243,900
Average Shareholders' Equity: R11,985,400
ext{ROSHE} = rac{ ext{Net Income}}{ ext{Average Shareholders' Equity}} imes 100 = rac{1,243,900}{11,985,400} imes 100 = 10.4 ext{%}

To determine the dividend payout rate:
Total dividends: R835,000, Net income: R1,243,900
ext{Dividend Payout Rate} = rac{ ext{Dividends Paid}}{ ext{Net Income}} imes 100 = rac{835,000}{1,243,900} imes 100 = 67.6 ext{%}